Can Business Insurance Be Written Off?

 

We sometimes hear questions from businesses here in the Greensboro area regarding business insurance and whether or not it can be written off your taxes.  According to the IRS, expenses are fully deductible, including insurance premiums, if they fit the following criteria:

1. The business must be operated "for profit"
2. The insurance costs being deducted must be for insurance that is "both ordinary and necessary"

An ordinary business expense is one that's commonly accepted in your industry.  A necessary business expense is one that's viewed as being appropriate and helpful for your business.

Business Insurance Premiums

According to the IRS, as a business owner, you can deduct the the necessary and ordinary cost of insurance premiums if the insurance is for your business.  There are a number of common business insurance policies that qualify, including:

• General Liability Insurance
• Professional Liability Insurance
• Commercial Property Insurance
• Data Breach Insurance
• Workman's Compensation Insurance and more

These are all policies designed to help protect your business and, if they are considered necessary and ordinary in your particular industry, then the full costs are likely deductible.

Seek a Tax Professional

There are a number of business insurance costs that may be tax deductible and certain policies don't qualify as being deductible.  The best advice is to seek the counsel of a tax professional to determine the difference.  This will help take the guesswork out of which insurance you carry and which are considered actual business expenses.  

If the insurance coverage you want to write off isn't considered necessary and ordinary by the IRS, then they won't consider it a business expense and it can't be written off.  The following types of insurance generally cannot be written off:

• Policies that are designed to help cover lost earnings due to disability or illness
• Life insurance policies
• Self-insured reserves
• Policies taken out to help secure a loan

Business vs. Personal Expenses

While there is no allowance for deducting personal or living expenses, some things used for business and personal use may be partially deductible on your taxes.  An example of this would be your car insurance if you use your car for both personal and business use.  Keeping track of your mileage, you can calculate the percentage you've used your car for business during the year, then at tax time deduct that percentage of your insurance premium cost.  Business use of your home may also provide a partial deduction.

Are Homeowners Insurance Payouts Taxable?

 

When receiving homeowners insurance payouts after an insurance claim has been settled, sometimes our Greensboro area clients question whether or not those payouts are taxable.  The answer is generally "no," insurance payouts are not taxable, with a few exceptions.

Not For Profit

Insurance is designed, as is said in the industry,  to "make you whole."  This simply means that an insurance payout on your homeowners policy is meant to put you back where you were before suffering the loss for which your claim has been made.  Homeowners insurance is not intended to compensate you for any more than you had before your loss was experienced and your claim was made and paid.  In fact, for a risk to be considered insurable, the opportunity for loss must be present but the opportunity for financial gain must be absent.

Taxable Homeowners Insurance Payouts

An exception to the non-taxability of homeowners insurance payouts relates to homeowners suffering a loss who decide to do the necessary repairs themselves.  The question of whether or not you're allowed to do your own repair work is basically up to your insurer.  They may be more likely to allow this for a relatively simple job that doesn't require some specialized skill such as that for plumbing, electrical or re-roofing work.

A few caveats regarding doing your own repairs for an insurance claim:

• You may not save much money by doing your own work on an insurance claim
• You may need to be licensed to carry out certain work such as plumbing or electrical
• Work that doesn't turn out as planned may face additional costs that your insurer won't cover
• If you're carrying a mortgage on your home, your mortgage lender likely has a say in who performs the repair work on your home.
• Your insurer will likely inspect and value the damage for which you're submitting a claim.  Once this is done, get an estimate from a professional contractor who may spot damage not obvious to you.  Get them to provide a professional estimate for repairs, which you can use when negotiating with your insurer for your final payout.

Labor Costs May Be Taxable

Once your insurance payout has been made, any amount over and above the cost of material for the repairs may be considered labor, which was provided by you.  In the eyes of the IRS, this money may be seen as taxable income to you.

Car Insurance Trackers: What Data is Tracked?

 

Many vehicle insurance companies are now offering policy price discounts for clients who volunteer to equip their car or truck with an insurance tracking system.  Historically, car insurance companies have relied on various demographic information in order to determine the likelihood of a policy applicant making future claims.  This began with the creation of tables, known as actuarial tables, notating the number of vehicle accidents by location, by driver's gender, age, type of vehicle and more.

Then, when you were applying for insurance coverage, your personal driving history, including driving infractions and any past claims, were added to those statistics.  Driving history proved to be a good indicator of future potential claims.

While these actuarial tables remain an important part of your car insurance underwriting, determining whether or not to sell you a policy and at what premium rate, car insurance trackers add another level of accuracy to this process.

What is a Car Insurance Tracker?

Car insurance trackers were first introduced in the U.S. by Progressive Insurance Company in 1998.  Progressive's program, called Snapshot, is what's known as usage-based insurance.  It personalizes your car insurance premium rate based on the way you actually use your vehicle.  You pay according to the data collected by your tracker, which is sent to your insurer and analyzed to determine your driving habits.

Many auto insurance companies offer usage-based programs.  Most provide an immediate discount to your policy cost simply for signing up to participate in the program.  You then get a personalized premium rate at renewal time, depending on the results of the analysis of your driving habits.  While there's the potential that your premium rate may increase if it's found that your driving behavior shows increased risk, most drivers experience lower policy costs at renewal time.

What Data is Tracked?

There are two ways for data to be tracked: one is with a dongle that plugs into your car's computer via the OBD-II port and the other is through an app loaded onto your smartphone.  Once collected, the data is sent wirelessly to your insurance company for analysis.

Insurers are interested in information that indicates your typical driving habits, particularly those that show risk of potential claims.  Data collected by the tracker system may include:

• Hard acceleration
• Hard braking
• Speeds driven
• Fast cornering
• Use of handheld device while driving
• How often you drive, for how long and what time of day

How Do Car Insurance Tracking Devices Work?

 

Car insurance tracking devices are a great piece of technology, not only for drivers who use them but for companies that insure those drivers.  Also known as "telematics," vehicle tracking devices have been popular with many insurance companies since the late 1990's, with Progressive Insurance Company pioneering efforts in the U.S. to get these devices used in cars driven by their auto insurance policyholders.

What are the Benefits?

For insurers, the benefits of having tracking devices operating in their policyholders' vehicles include:

• Letting the insurance company know how safe of a driver you are by collecting data on such things as harding braking, fast acceleration, aggressive cornering and speeds driven.
• Letting the insurer know how much you drive, what times of day your car is being used, where it's being parked overnight and whether you're using your cell phone while driving.

All of the above-listed data give a picture of your driving habits and your likelihood of engaging in behavior that may cause you to be prone to be involved in an accident.

Benefits to you as a driver with telematics operating in a vehicle include the collection of data that can potentially help you to become a safer driver.  Learning how to overcome your tendency for fast acceleration and other forms of aggressive driving can help save you money not only on your insurance policy premium costs but also your fuel usage.

How it Works

There are two types of auto insurance trackers.  One is a dongle that plugs into your vehicle's On-Board Diagnostics II (OBD-II) Port, which is where your mechanic accesses data from your vehicle's on-board computer.  The other method for activating an on-board tracker is to load a special app onto your smartphone, which you must then carry in your car when driving.  The data collected by these two tracking methods is then sent to your insurance company where it can be analyzed.  Many insurance companies will give you an immediate discount on your policy premium cost when you sign up for their auto-tracking program.  Others will wait a predetermined amount of time to analyze your driving habits before deciding whether to offer you a discount and for how much.

Some Additional Benefits

Additional features some trackers provide include contacting emergency services in the event of a collision even if, as the driver, you're unresponsive.  They can also send roadside assistance if your car breaks down.

Buying a Car Online: Pros and Cons

 

With the Covid-19 pandemic closing in on the two-year mark, never has online buying been more popular.  This applies to goods that have always been popular to purchase online such as restaurant meals, jewelry, clothing and books, but also more unusual purchases like buying a car online.  Shopping for car insurance online has been popular for some time now, and in fact, it's estimated that more than 70% of those buying car insurance last year began by going online to do some research.

What's really surprising is that, according to J.D. Power, about 2/3 of consumers buying new cars do their shopping online.  The Internet is an incredibly useful tool for those doing their "due diligence" by researching products before putting their money down, especially with higher-priced items.  Keep in mind that there's a difference between shopping online and buying online.  Shopping for a car online includes:

• Researching a particular model car
• Finding cars that are listed for sale
• Comparing different models of cars
• Calculating car loan rates and payments
• Determining what their current vehicle is worth
• Obtaining car dealer information

You may also utilize social media in your search for buying a car by chatting on dealer websites and even negotiating with dealers.

Pros and Cons of Buying a Car Online

Deciding whether or not to buy a car online will depend on just what you're looking for in a car-buying transaction.  Buying online can be fast, convenient and without the hassle of having to deal with a car salesman.  But if you're the type of person who wants to see, touch and smell your potential vehicle while taking it out on a test drive, then an online purchase might not be right for you.  Here are some of the pros for online car purchasing:

• Streamlines the process, saving time from the traditional in-dealership experience
• Offers a car deal with no negotiations, no haggling and no sales pressure,
• Shop at your convenience.
• Take delivery at home or anywhere else you choose.

Here are some cons:

• Inability to inspect (see and feel) the car you're buying.
• Less chance of taking a test drive.
• Less ability to negotiate a price.
• May restrict your financing options.
• Getting a fair price for your trade-in may be difficult.

Whatever you decide, know that thousands of people are successfully buying cars online today and the trend only seems to be getting more popular.

Using Risk Analysis to Understand Coverage Needs

 

Risk analysis, which is the process of assessing the probability of an adverse event occurring, can be invaluable in helping determine your specific insurance coverage needs.  The entire insurance industry revolves around the reality that risk is an unavoidable factor in everyone's life.  By buying insurance coverage, whether it's life insurance, auto insurance, home insurance, liability insurance or any other insurance coverage, you're sharing the risk of accidental financial loss in your life with your insurer.

Risk analysis involves the study of the uncertainty that risk plays in your life.  If you drive a car, you run the risk of being involved in a collision, of injuring a third party or causing property damage, of having your car stolen or vandalized or of having a tree fall on it and crushing it.  There is insurance to help protect you from the financial loss that any of these risk factors may cause you if realized.  If you drink before driving, regularly break the speed limit or use your cell phone while driving, your risk of suffering an accidental loss skyrockets.  Conducting a comprehensive risk assessment will uncover the dangers you face.

The Risk Assessment Process...Also Known as Underwriting

When you apply for an insurance policy, whether for your car, your home, your life, or anything else, the insurance company goes through the process of underwriting, also called risk analysis or risk assessment.  They do this to determine the likelihood of whether offering you insurance coverage appears to be a good investment on their part.  If a policy is offered, risk assessment also helps determine the amount of premium you should be charged for your coverage. 

The process of risk assessment begins with identifying any hazards that could potentially cause harm.  For home insurance, a home inspection is typically conducted to uncover any risks or hazards that could lead to the homeowner later submitting a claim.  For car insurance, a check is made of your driving history to uncover any factors such as speeding tickets or DUIs that could indicate behavior that could lead to future accidents.  For life insurance, your family health history is looked at, as well as unhealthy habits such as cigarette smoking.

You can use the information uncovered by these assessments to do your own personal risk analysis to determine changes you need to make to help alleviate or reduce these risks.  Lower risks mean increased security.

Choosing Commercial Auto Insurance

 

The rules regarding commercial auto insurance in North Carolina can be somewhat confusing to the layman but one thing is easy to understand - if your business owns a vehicle, you're required to carry commercial auto insurance.  Whether it's one vehicle or a hundred, personal auto insurance won't work if the vehicles are owned by the business.  Personal vehicles are different.  Using a personal vehicle for work purposes may be okay with personal auto insurance coverage under certain circumstances.

Personal Car or Commercial Vehicle?

For small business owners, the line between what's business and what's personal can be fuzzy.  If you drive your personal vehicle for business purposes at times and you carry personal auto insurance coverage, it's important that you understand how your insurer defines commercial use of your car or truck.  Your insurer should also be aware of the ways that you use your vehicle.

If you're driving a personal vehicle covered by a personal auto insurance policy and cause/incur any damages, your insurance company may deny a claim if they determine the vehicle was being used for business purposes.  An example of this is personal cars being used for rideshare operations such as Lyft or Uber.  If you use your vehicle for any business-related purposes, your insurer may consider it as a commercial vehicle.  It's best to check with them and let them know what your activities include.

Here are some examples of personal car use that an insurer may consider business use:

• Providing a service for which you're paid a fee
• Picking up or delivering goods of any type
• Visiting clients at their locations

Your vehicle may also be considered a commercial vehicle if: 

• The named owner on the title is a business
• The vehicle is rented to others
• The vehicle is driven on a consistent basis by you or others for both personal and business purposes

Commercial Auto Insurance Costs

A variety of factors may influence the cost of your commercial auto insurance.  These include:

• Specific coverage needs, including the minimum amount of liability coverage required by law for specific vehicle(s).
• Where your business is located plays a role in premium costs.  Larger cities will usually require higher premium costs than small towns.
• Type of business is a factor.
• Types of vehicles are important.
• Driving history of vehicle operators factor in to policy costs.
• The extent of your vehicles' travel radius affects premium costs.

Auto Insurance and Teen Driving Lessons

 

In North Carolina, teen drivers between the ages of 15-17 are required to go through a process called "graduated licensing" before being allowed to receive full driving privileges.  This process has strict requirements for teens as they gain the on-the-road experience needed to drive a vehicle with minimal restrictions and no supervision.

Eligibility requires that a teen driver: 

• Be at least 15 years old
• Has received a Driving Eligibility Certificate
• Has completed a state-approved driver education course

Driving Eligibility Certificate

Students completing their high school requirements will be issued a Driver Eligibility Certificate by their school.  They must be between the ages of 15 and 17 and currently enrolled in school and be making progress toward achieving either a high school diploma or GED.

Driver Education Courses

Teens 14-1/2 years old or older and progressing toward a high school diploma or GED may enroll in an approved driver education course.  These are provided through North Carolina high schools.  

Driver education courses consist of:

• 30 hours of classroom instruction
• An eye test
• Six hours of behind-the-wheel training on the road 

Upon completion, a Driver's Education Certificate is awarded, which is part of the requirement for obtaining a learner permit, step one in the graduated licensing process.  Click here to see descriptions of all three levels of the graduated licensing process.

Driving Lessons

Driving lessons extend throughout the North Carolina teen graduated licensing process.  They start while qualifying for step one, obtaining the Limited Learner Permit, while completing the driver education 30 hours of classroom instruction and six hours of behind-the-wheel training.

Driving lessons continue during the 12-month learner permit period and an approved adult driver is required to be in the passenger seat during all drive times.  A minimum amount of 60 hours driving time, certified by a supervising driver, is required before moving onto step two of the process, Limited Provisional License.

Teens driving their parents' vehicle during the 12-month learner permit period are automatically covered under their parents' auto insurance.  Once the Limited Provisional License is obtained, the teen driver must be added to the parents' auto insurance or a separate policy taken out.  Offspring of insured drivers may stay on the parents' auto insurance policy as long as they reside in the same home or are away at school.  This is often a less expensive option than getting their own policy.  Parents should expect premiums to rise significantly.

9 Tips for Safer Grilling

The National Fire Protection Association (NFPA) reports that seven out of every ten adults living in the U.S. have a grill or a smoker (according to Hearth, Patio and Barbecue Association).  The NFPA further reveals that in recent years fire departments responded to a yearly average of 8,900 fires that involved either grills, barbecues or hibachis, consisting of 3,900+ structure fires and 4,900+ outside and/or unclassified fires.

Each year, when the warmer weather hits and the BBQ grills start getting more use, the risk of home fires increases.  Here are some tips that may help to improve your grill safety.

1. Any grill, whether charcoal, wood or propane fueled will produce carbon monoxide, (or CO), when being used.  CO is a colorless, odorless gas that can cause serious injury and even death when breathed in for any length of time.  Prudent grill safety demands that you never use a grill indoors or anywhere you're not surrounded by fresh air.
2. Your grill should be moved at least 10 feet from any surface that can burn.  This includes the siding of your home and your garage.  Nothing should be above your grill, including a patio cover, roof overhang or tree branches.  Don't push your grill up against a deck railing.  This could become hot and start to burn.
3. Make sure your grill is placed on a flat, even, stable surface to prevent it from tipping over.
4. Check your propane grill for gas leaks before using it for the first time each grilling season.  Spray a 50/50 solution of dish soap and water on valves and hoses and look for bubbles.  Leaks may require hose tightening or replacement.
5. Never leave your grill unattended while in use.  If you must walk away, have another adult take your place watching the grill.
6. Keep a small spray bottle filled with water close at hand to extinguish any small flare-ups caused by fat dripping from the meat you're cooking.
7. A fire extinguisher should be nearby your grill and you should know how to effectively use it without having to stop to read the directions.
8. Clean your grill regularly, preferably after each use.  Don't allow fat or grease to build up as this is a major cause of fire flare-ups.
9. Never turn on the propane while your grill cover is closed.  This can cause gas to build up and, when ignited, explode into a fireball.

How to Choose Your Auto Insurance Deductible

 

There are numerous ways available for saving money on your auto insurance coverage, many of which can be seen here.  The last item on the list, "raise your deductibles," is one that many policyholders consider doing first because it's simple to do and the results show up almost immediately.  The question is, what amount should your deductible be?

The Purpose of Your Auto Insurance Deductible

Vehicle insurance, like virtually all other insurance, is based on the sharing of risk.  When you take out an auto insurance policy, the insurer underwriting the policy is taking on a portion of the risk to which you're subject by owning and driving a vehicle.  If you suffer a covered loss, the insurer is responsible for compensating you for an agreed upon portion of that loss.  

The deductible associated with your policy is the amount you agree to pay toward the loss before your insurer pays their portion of the claim.  This deductible represents the amount of risk for which you retain responsibility in the event you suffer any loss covered by the policy.  The larger the deductible, the greater your risk of personal financial loss when a claim is made and the lower the insurer's financial risk.  Because of this, a lower deductible typically means a higher premium and choosing a higher deductible will mean a lower premium.

Choosing Your Auto Insurance Deductible

Choosing your auto insurance deductible is done when you take out your policy but can be changed, if desired, while the coverage is in force.  The average amount most people select for their deductible is $500, although some policyholders may opt for an amount as low as $100.  Upper limits can be in the thousands, especially when insuring a very valuable vehicle.

Since a lower deductible means higher premiums, you may opt for a higher deductible such as $1000 or $2000 in order to save money on your policy premium costs.  Contact your agent to learn how much you can save.  There is no deductible required for the liability portion of your coverage and you may choose to carry different amounts on your collision coverage and your comprehensive coverage.

Though you may save money when selecting a higher premium, any claim you submit will require you to come up with more out-of-pocket money.  You should have an emergency fund allowing payment of your deductible in the event of a covered loss.

Types of Off-Road Vehicle Insurance

 

If you own any type of off-road vehicle, whether it's an ATV, dune buggy, dirt bike, snow mobile or golf cart, be aware that your standard homeowner's insurance likely provides you with little or no protection against it being damaged or destroyed.  This is especially true since your off-road vehicle is taken off your property.

North Carolina State Law

In the State of North Carolina, insurance is required on all registered motor vehicles.

Laws governing ATVs are similar to the laws governing motorcycles.  This means that all registered ATVs are required to carry at least a minimum amount of liability coverage, both bodily injury protection and property damage liability.  The minimums are the same as they are for motorcycles and cars:

• $30K per person/accident bodily injury liability
• $60K for all persons per accident
• $25K per accident in property damage liability

Even if your vehicle is not registered because it's not used on public roads (which is illegal anyway) or public lands, having liability protection is important to have in case you're involved in an accident that's deemed your fault.  You'll be held financially responsible if you cause any property damage or injuries while using your vehicle.  Without insurance, the cost of these damages will have to come out of your own pocket.  If your off-road vehicle is registered, you'll also be required to carry insurance for uninsured/underinsured drivers.

Off-Road Vehicle Insurance

Even if your off-road vehicle isn't registered and you're not required to have insurance by law, obtaining coverage for your own protection and peace of mind is still a smart move.  There are four types of coverage that go into making of an off-road vehicle insurance policy.  These include:

1. Bodily Injury Liability - pays toward medical costs of parties injured in an accident you cause.
2. Property Damage Liability - pays toward the repair/replacement of property owned by a third party damaged or destroyed in an accident you cause.
3. Collision Coverage - helps pay toward the cost of repairing/replacing your ATV if damaged in a collision with another vehicle, a tree, a fence, etc.
4. Comprehensive Coverage - helps pay to repair/replace your off-road vehicle if it's damaged in ways other than in a collision.  This may include damage caused by weather (such as a hail storm), fire, vandalism or if your off-road vehicle is stolen.

Full protection is the safest option.  You should read and understand your policy completely.

Converting from Term to Permanent Life Insurance

 

People buy life insurance for lots of good reasons and, if you're like most, your reason for carrying life insurance falls into one or more of about half a dozen categories, including:

1. The number one reason for your buying life insurance is to provide financial protection for your loved ones in the event you die prematurely.  
2. You want to meet your financial responsibilities even after your passing.
3. Life insurance benefits provide cash that can make up for your family's loss of your income.
4. Benefits can be used to pay off debts left behind such as a home mortgage.
5. Your children may have the tuition needed to attend college from your life insurance proceeds.
6. Insurance benefits may be used to pay for your burial/funeral expenses.

Kinds of Life Insurance

There are several types of life insurance that fall into two broad categories:

Term Insurance, which is the simplest, most basic form of life insurance.  It pays benefits to your beneficiary if you die during the term of the policy, which is normally from anywhere between one and thirty years.  Most term policies provide no other benefits besides the death benefit.

Permanent Life Insurance, also called Whole Life Insurance, provides a death benefit for your whole life.  In addition, these policies accumulate a cash value that you can access after a certain period of time.  Traditional whole life insurance policies usually have a level death benefit amount and level premium cost throughout the life of the policy.

Converting Your Term Life Coverage to a Greensboro Permanent Life Insurance Policy

Term life insurance is typically sold as being the most affordable way of providing financial safety to your loved ones in the event of your unexpected death.  Because term insurance is "pure protection," unlike whole life with its cash value provision, you can get a higher death benefit for a significantly lower premium.  This is most important when families are young, with limited resources but a large need for a family financial safety net.

When your resources have increased and the need for the safety net becomes less, you may be considering converting your term policy to a Greensboro permanent life insurance policy.  Term policies typically have a provision allowing for this conversion, as long as it's done within their accepted time frame.  Simply contact your insurance agent and request a conversion.  A medical exam and going through underwriting should not be needed.

11 ATV Safety Tips

 

All-terrain vehicles (ATVs) are extremely popular in North Carolina for the fun and excitement they provide.  They are, however, not toys and should be respected and treated as the powerful machines they are, with some of them weighing upwards of half a ton and able to reach speeds of more than 60 miles per hour.

These vehicles are responsible for thousands of deaths and hundreds of thousands of injuries each year in the United States.  Many of these deaths and injuries may have been preventable, had the riders observed appropriate safety rules and riding tips for operating ATVs.  We'll present some of those tips here.

ATV Safety Tips

1. Before riding your ATV, take the time to learn how.  Training can be obtained for little or no cost in most areas.  Hands-on training is available from the ATV Safety Institute, who also offer a free ATV E-Course.  You may also find training through a local ATV riding group.
2. Always wear proper ATV riding gear, including a certified DOT-approved helmet that fits properly, safety glasses or goggles, gloves, a long-sleeved shirt or jacket, long pants and boots that cover up over your ankles.
3. Ride on designated trails at safe speeds and on pavement only to go across roads.  ATVs aren't designed to operate well on pavement.
4. Don't mix ATV riding with alcohol or controlled substances.
5. No child under the age of 16 years should be allowed to drive an adult ATV.  Smaller, less powerful ATV's are designed for youngsters, but kids riding these vehicles should be supervised to help ensure their safety.  Children under six years of age should not be on an ATV, either as a driver or a passenger.
6. The Consumer Product Safety Commission recommends ATVs with engine sizes of less than 70cc for kids from six to eleven years of age.  Engine sizes between 70cc and 90cc are recommended for kids between 12 and 15 years old.
7. Avoid riding your ATV at night or when visibility is poor.
8. Three-wheeled ATV's have been deemed unsafe and should not be ridden.
9. Most ATVs are designed for only an operator and not a passenger.  Room for the rider to redistribute his weight is necessary to handle the irregularities of some terrain.  
10. Maintain your ATV to keep it running smoothly.
11. Make sure you and your ATV are properly insured against liability and personal injuries.  For an expensive ATV, consider comprehensive coverage.

Motorcycle Insurance: 6 Ways to Save

 

Motorcycle riders are a breed apart from your typical car drivers, glad to feel the wind in their face and undeterred by the warnings from mom about the dangers you'll find lurking around every corner.  Sure, bike riding can be risky and a serious accident on two wheels can be much more devastating than when driving on four, surrounded by a steel cage with safety add-ons like airbags.  But for careful riders with proper safety gear, a registered motorcycle safety course under their belts and a healthy respect for the risks of the road, motorcycling can be a great way to go.

Ensuring You've Got Proper Insurance

One critical piece of your motorcycling protection is having the proper motorcycle insurance in place.  In North Carolina, every vehicle being driven on public roads is required to have at least a minimum amount of basic liability insurance in case you're the cause of an accident that injures or kills another person or causes damage to someone else's property.

While it won't save you money on the cost of your insurance, carrying more than the required minimum amount of liability coverage could save you a huge amount of money in the event that you're found responsible for causing an accident where someone dies or is seriously injured and you become the defendant  in a liability suit.  Judgements in these types of suits can run into the thousands, hundreds of thousands or even millions of dollars.  Your best protection is to carry five or ten times the required amount of bodily injury liability insurance.  You may also want to consider an umbrella policy for the best all-around liability protection.

Here are six ways to save on your motorcycle insurance:

1. Always shop around and get quotes from several insurers.  It doesn't make sense to pay higher rates charged by one company when another insurer provides the same service at a lower price.  
2. Older, smaller, slower bikes will have lower insurance costs.  Choose your bike wisely.
3. If you only ride occasionally, ask for an infrequent rider discount.  While you're at it, find out about every discount offered.  There may be several.
4. If your bike isn't worth too much, dropping your comprehensive and collision coverage will save bucks.  If your bike has a lienholder, however, this won't be possible.
5. Raise your deductible.
6. Keep your bike secure with chains, locks and/or alarms.  Keep it garaged when not being used.

29 Essentials for Your ATV Ride

 

When you're trail riding your ATV, especially when exploring far out into the back country, you'll need ways to handle whatever pops up so that your jaunt can stay safe and uninterrupted by problems for which you're unprepared.  The trick to being prepared for unexpected problems while trail riding is to be armed with a number of essentials you shouldn't be out riding without.  This includes proper insurance protection.

Whether your off-road adventure is for the day or a week, a well put together kit of off-roading essentials will help in ensuring your trip is safe and enjoyable and that you're prepared for any situation.  This may include anything from a simple mechanical repair, a flat tire or an injury requiring first aid.  All of these situations should be mere bumps in the road if you've come prepared with a comprehensive off-roading ATV essentials kit.

Your Essential ATV Off-Road Kit of Safety Equipment and Supplies

Essential items for your ATV trail ride kit fall into three categories - tools, safety equipment and spare parts.  For longer rides you'll likely need more items, but some of these essentials should be carried at all times when possible.  Here's the list.

Tools

1. Carry your ATV's owner's manual and be familiar with key service items
2. Adjustable wrenches or assorted sizes specific to your model ATV
3. Allen wrenches
4. Flat head and Philips head screw drivers
5. Pliers
6. Spark plug wrench
7. Tire repair kit and air pump, either manual or 12-volt
8. Flashlight
9. Zip ties
10. Roll of baling wire
11. Duct tape

Safety Equipment and Supplies

1. Proper riding gear
2. DOT-certified helmet
3. Cellular phone
4. Maps or GPS
5. Matches or lighter
6. Pocket knife
7. Small fire extinguisher
8. Extra tire tube(s)
9. Tow rope
10. Power snacks such as power bars, trail mix or beef jerky
11. Thermal blankets
12. An experienced rider to help carry the essentials and accompany you on the ride.  You should avoid riding alone.

Spare Parts

1. Extra fuel (in a small container)
2. Spare tire
3. Lug wrench
4. Spare drive belt (depending on ATV model)
5. Jumper cables
6. Spark plugs

Be Prepared

These lists may appear to contain a lot of items but they cover just about everything you might need when something goes wrong on a trail ride.  An old saying tells us that the one thing you forget is probably the one thing you'll need.

Though not essential, you might also consider installing a power wench on your ATV.  They have many uses.

Can You Ever Have Too Much Insurance?

 

If you've ever caught yourself thinking "I'm insurance poor," it's likely because you've been adding up all those policies you've managed to collect and all those premiums you continue to pay.  If you're like most people, you have life insurance, car insurance, health insurance, homeowners or renters insurance and maybe more.  The question is, can you ever have too much insurance?

Vehicle Insurance

In the state of North Carolina, anyone driving a vehicle on public roads is required by law to have at least a minimum amount of liability insurance.  This is third-party liability coverage to help pay for financial losses suffered by others in an accident you cause.  Losses may be the result of property damage, bodily injury or death.  In NC, the minimum liability coverage required is:

• $30,000 per person per accident bodily injury
• $60,000 per accident bodily injury coverage for all persons
• $25,000 per accident property damage

How Much is Enough

Many experts recommend you increase your liability limits three to five times the minimums (or more).  The amount you carry should depend upon the number of assets you stand to lose if sued for liability.  Even more protection is available through the purchase of a high-value umbrella policy.  This is a relatively inexpensive way to significantly increase your asset protection.

Other car insurance options should depend on the value/condition of the insured vehicle.  If you're driving an older, beater car that you could easily replace, carrying collision and comprehensive coverage on it probably doesn't make sense.  The money you're spending on these coverages might be better applied to medical payments or uninsured driver's coverage.

Life Insurance

You buy life insurance to keep your dependents financially secure in case you die unexpectedly.  The death benefit should cover: 

• Your income
• Major debts
• Funeral expenses
• Future obligations such as your children's education

As you age, however, you likely don't need the coverage you once needed.  Your home mortgage may be paid off, the kids are grown and off on their own and your debts are what they once were.  In this case, you can lower your coverage to a more appropriate amount. 

Homeowners Insurance 

Your homeowners coverage should be enough to rebuild your home and replace your property should the home be totally destroyed.  This doesn't mean covering the market value of the home or the value of the land.  Umbrella coverage can extend your homeowners liability limit.

11 Golf Cart Safety Tips

 

Whether you're using a golf cart out on the links or for driving up and down the streets of your community, there are some tips we'd like to share to help you travel safely as you go.  For many, nothing beats the relaxation provided by a nice, sunny day out on the golf course, but nothing can ruin that good time quite as much as a golf cart accident.

Golf cart accidents can cause anything from minor injuries and/or damage to catastrophic injuries and even death.  According to the Consumer Products Safety Commission (CPSC), there are approximately 15,000 golf cart related injuries annually that are serious enough to warrant a visit to the emergency room.  While some of these accidents are a result of poor manufacturing design, most can be attributed to negligence on the part of those involved.  These are preventable accidents that may have been avoided by knowing and following these tips.

Golf Cart Safety Tips

1. Learn how to safely operate your golf cart by reading the owner's manual, if available, and follow all safety guidelines.
2. Make sure the tires on the cart are inflated to the recommended tire pressure.
3. Golf carts are lightweight and top-heavy, making them fairly easy to flip over if not driven properly.  Avoid sudden or sharp turns and keep your speed within reason.  The number one cause of golf cart injuries is passengers jumping or falling off the cart.
4. Don't overcrowd your golf cart with passengers.  Everyone riding on your cart should have their own seat.  Don't allow anyone to hang out the side or back of the cart.  Overcrowding makes it easier for passengers to fall off and puts additional strain on the golf cart, making it more difficult to handle safely.  
5. Just like with a roller-coaster, keep all body parts inside the golf cart.
6. Just as with any vehicle, don't drink and drive or consume intoxicating substances before or while driving.
7. Avoid distractions when driving a golf cart (or any vehicle).  This particularly pertains to cell phone use, which the CPSC lists as the number one cause of distracted driving.
8. Use seatbelts in your golf cart.  While most golf carts don't come equipped with seatbelts, retrofitting them into your cart is fairly easy and well worth the modest cost when considering the added safety you'll enjoy.
9. Avoid bad weather when possible.
10. Perform regular maintenance.
11. Have fun but stay safe!

Is Motorcycle Insurance Required?

 

North Carolina state law requires that all motor vehicles operated on public roads within the state be covered by at least a minimum amount of liability insurance.  This includes motorcycles and motor scooters.  While there are a variety of other insurance coverages available to motorcycle owners, only liability coverage is made mandatory by state law. 

Liability insurance is what helps protect you from financial losses if you are found legally responsible for causing losses to others while operating your motorcycle.  These losses can be in the form of physical injuries, death or property damage/destruction.  The state has set minimum requirements for the amount of mandatory liability coverage which are as follows:

1. Bodily injury coverage - $30K per person per accident and $60K for all persons per accident
2. Property damage coverage - $25K per accident

How Much Do You Need?

While these above outlined dollar figures are the minimum amounts of coverage required, you may elect to have higher limits on your policy.  This makes sense, since an accident for which you are held liable can amount to many times these minimums.

Motorcycle liability insurance helps pay for third-party injury expenses including medical costs, lost wages, funeral costs (in the event of a death) and even long-term disability costs.  It also pays for property damage, including damage other vehicles suffer.  It may also pay toward the costs of defending you in court if you're subject to a liability suit.

With liability coverage only paying up to policy limits, it's obvious that any accident you cause could end up costing you many, many times your policy limit if you're only carrying the minimum liability amounts.  Experts recommend you buy five to ten times the required amounts, depending on how much in assets you need to protect.  You might also consider adding an umbrella policy to your coverage.  These policies typically have limits starting at one million dollars.

Additional, Optional Motorcycle Coverage

Although not required by law, there are a number of other types of motorcycle insurance coverage that are highly recommended for anyone riding on two wheels.  Statistics tell us that the majority of motorcycle insurance claims are for single vehicle accidents where liability coverage doesn't come into play.  Cyclists should consider the following:

• Collision coverage
• Non-collision (or comprehensive) coverage
• Uninsured/underinsured motorist coverage
• Medical payments coverage

Some insurers will offer lower premiums for lay-up insurance when your bike is stored away for the winter.

6 RV Safety Tips

 

RVing has become an increasingly popular way to travel and vacation, but it also includes a number of potential safety hazards that should be understood before starting out on your RV experience.  Just because you can drive a car doesn't mean you'll be immediately adept at driving a motor coach or towing a trailer.  Let's take a look at some important RV safety tips geared to helping you make the most of your RV travels while remaining both safe and sound.

Six RV Safety Tips

1. Whether you're renting an RV or already own a rig, the first and most important safety tip is to thoroughly get to know your RV.   You'll need to do some research so that you know the height of your rig, its weight and, especially if it's a trailer, it's weight capacity.   This means how much stuff you can add to your RV and still remain under the manufacturer's weight capacity recommendation.  You'll also need to know how to distribute the weight in your coach or trailer.
2. Driving an RV is more like driving a big-rig truck than driving a car and the only way to get used to driving something this size is to practice, practice, practice.  Before even purchasing your first RV you should rent a model you like for the day to see how it feels.  You might try this with several different models until you find one you really like.  Lots of maneuvers in an RV are different than you're use to in your car or pickup, including accelerating, braking, passing other vehicles, using only your mirrors to see behind your rig and, most importantly, backing up.
3. Your RV insurance and emergency roadside assistance should provide you with complete coverage.  If you're pulling a trailer and your pulling vehicle breaks down and needs to be towed, the trailer should also be towed so it's not left unattended on the roadside.
4. You need to monitor your tire pressure regularly, on your motorhome or on your trailer and pulling vehicle.  Tire blowouts are the reason for many RV accidents.  Under- or over- inflated tires are an accident waiting to happen.  Consider purchasing an automatic tire monitoring system.
5. Don't speed.  Your RV tires are rated not only for a maximum weight but also for a maximum speed.  Consult your tires' sidewalls.
6. Get enough rest and don't drive for too many hours on any given day.

5 Safety Tips for First Time Campers

 

First-time campers have a great deal to look forward to.  Whether you're venturing out for a solo camping experience, going with your best mate or including the entire family, camping out in nature can be a fun, rewarding adventure that must be experienced to be fully appreciated.

And, while camping can be both fun and entertaining, it also presents a certain degree of danger.  It's important for first-time campers to be aware of these dangers and to take steps to mitigate them wherever possible.

Safety Tips For First-Time Campers

Here are some safety tips to consider for first-time campers.

1. Site Safety

Choosing an appropriate camp site will depend on several factors including age and condition of group members and any physical limitations or medical requirements.  If you're staying at an established campground, you may have access to amenities not available out in the wilds, including restrooms, grocery stores, cell phone service, etc.

2. Fire Safety

Fire danger is ever-present for campers who are cooking and enjoying gatherings around a campfire.  Here are some fire safety tips:

• Don't build your fire beneath low-hanging trees
• Keep a water supply and/or fire extinguisher close at hand in case your fire gets out of control
• Don't leave your fire unattended
• Put out your fire completely before retiring
• Utilize available fire pits at campgrounds

3. Insect and Plant Safety

When going for nature hikes, you may sometimes accidentally come in contact with poisonous plants such as poison ivy, poison oak or poison sumac.  Learn what these plants look like, try to avoid them by staying on an established path and have some medications available such as oral antihistamines and topical creams or lotions.  Certain insects such as mosquitos can also be dangerous to your health.  Wear bug spray at all times when camping, even when sleeping, and use mosquito netting.

4. Water Safety

If partaking in water activities know water safety rules.  Know how to swim and, if boating, wear a life jacket.  Read any signs in or around the water and make sure someone in your group knows how to perform CPR.  Don't go into the water in the presence of lightning.

5. Food Safety 

Before your trip you'll need to plan what you'll want to eat and pack it in air/water-tight plastic containers, with perishables stored in an insulated cooler.  Avoid feeding any wild animals and keep food out of their reach!

8 of the Worst Camp Safety Mistakes

 

Venturing out into nature to experience the great variety of available camping activities has long been popular and, with spring here and summer on the way, the time to start making plans is now.  While some folks might be impulsive in deciding to go camping, there's something to be said about being properly prepared.  Like every Boy Scout learns, "Be Prepared" are words to live by to help avoid common camp safety mistakes.

The Worst Camp Safety Mistakes

In no particular order, following are some of the worst camp safety mistakes:

• Failure to complete some minimal pre-planning for your trip could be a big mistake.  Use a written checklist to help keep organized.  This should be checked and double-checked before leaving home for your camping trip.
• Failing to protect yourself from wild animals while camping or hiking can be the cause of inconvenience, injury or even death.  It's important to know what type of wildlife frequents the area you're planning to visit to take precautions to deter visits from critters and to protect yourself and your family.  Click here to find out more.

Bears in the Wild

Besides potential visits from small animals such as raccoons, possums or skunks, bears can be a real problem in some camping areas, especially if you're not in an established campground.  It's a mistake not to know how to deter bears from invading your campsite ore, if they do, how to react to them.  Bears coming into your camp are there for one reason - they want food (and human beings are not their preferred or typical food).  Consider these important tips:

1. Your food should be stored and cooked at least 100 yards away from where you'll be sleeping.
2. Food should not be kept in your tent.
3. Don't bed down in the same clothes you wore while cooking.
4. Food should be kept in airtight containers and a locking cooler.  These can be tied with rope and hoisted up a pole or a tree, at least seven feet from ground level.  As an alternative, lock food in your car trunk. 
5. Bears are attracted to garbage.  Put yours in doubled plastic bags and store in your car trunk.
6. If you meet a bear out on the trail don't make eye contact.  Speak in a low, calm voice while backing up.  Don't turn your back on a bear or run away.  Spray with bear repellent spray.

How To Choose an Insurance Company

 

Buying insurance can be a potentially overwhelming experience due to the vast number of confusing definitions, conditions, exclusions and coverages involved.  On top of this, you want to choose an insurance company that's well-regarded in the industry, financially strong, with a good claims history and top reviews from clients with whom they've done business.  Here's a breakdown of several factors to consider when you're trying to choose an insurance company:

• Understand the difference between an independent insurance agent or broker and an insurance company agent.  An independent agent likely has access to policies from numerous different insurance providers.  While an insurance company agent can only write policies from his or her own company, the independent agent can write whatever policy is best suited to your particular insurance needs.  To make matters even simpler, an independent will do the research and legwork to find the best choices and then provide you with multiple options to consider.
• When considering a particular insurer, research their history and look into their reputation.  How long have they been in business?  What products do they offer and in what states are they sold?  What can be said about their company leadership and community involvement?  What are their professed vision and values?
• Assess the financial strength of a company you're considering and don't accept any insurance offer from a firm with less than an "A" (excellent) rating.  A.M. Best is the #1 independent insurance company rating-company in the U.S., but you can find several others here.
• Choose an insurance company that sells the type of insurance coverage you need.  Many companies give discounts for customers who carry multiple policies (e.g., homeowners, life, vehicle) with them, so check into this.  Check for all other discounts.
• While price is an important consideration for most people when they choose an insurance company, it shouldn't be the only consideration.  A lower price may mean a lower level of coverage, so always compare apples to apples.  Keep in mind the old axiom that you get what you pay for.  There may be a number of reasons for the price differences between different companies.  One may be because the lower priced is new to the market, which may mean it's lacking in experience.

Get with a trusted broker and explore the companies and coverages available.  Seek professional guidance and utilize their ability to uncover the best protection at the fairest price available.

Car Insurance: Teen Driver Discounts

 

As the parent of a teenage driver, you're not only becoming aware of how quickly your son or daughter is growing up to be an adult but also seeing the looming cost involved with teen driver insurance.  Fortunately, help is available.  Read on to learn about teen driver discounts and other ways to save money when insuring your teen driver.

Why Teens Are So Expensive to Insure

The reason teen drivers are more expensive to insure than drivers 25 years and older is because they represent a higher claims risk to insurers.  This may be due to:

• Their inexperience
• Their likelihood to speed, drive after drinking and not use seatbelts, causing them to have more accidents and submit more claims

Money-Saving Teen Driver Insurance Tips

Consider these teen driver insurance tips:

• As with the purchase of any insurance, experts agree that the number one rule before buying is to shop around.  Best advice is to obtain at least three price quotes from different providers.  The easiest way to do this is to utilize the services of a quality insurance broker with access to numerous different insurance companies.  They'll do the legwork and then present you with a number of options for the coverage best suited to your particular needs.  In this case, you'll want quotes from companies that specialize in teen driver's insurance
• While adding a teen driver to your existing car insurance coverage will add significantly to your current coverage costs, it's still less expensive than having your teen obtain their own, separate policy.  Having your teen complete a safe teen driving program or other defensive driving course can help lower the cost of your insurance policy
• Other valuable teen driver discounts offered by many vehicle insurance companies include a good student discount for students maintaining a "B" average (3.0 GPA) or higher at school.  This particular discount can often mean 10-15% off of coverage costs.  Add to this a distant student discount and a low mileage discount

The Advantage of Telematics

Some insurers offer installation of a small telematics device into your teen's car so you can monitor their driving behavior.  Positive results of driving habits may bring a driving insurance discount.  A telematics device can keep track of number of miles driven, speeds driven, times driven and number of hard brake applications.  Knowing they're being monitored in itself may prove to make your teen a safe driver.

How to Know If You Are Underinsured

 

You buy insurance primarily for the purpose of protecting yourself and your family against certain losses from which you would otherwise be helpless to handle financially.  For example:

• Life insurance protects the financial future of the loved ones that depend on your income, so their standard of living can continue at a similar level in the event of your untimely death.
• Auto insurance protects you from losses associated with liability suits if you're held responsible for causing injury, death or property damage to a third-party with your vehicle.  You can also insure against damage or destruction to your vehicle, personal injuries and more.
• Homeowner's insurance provides a long list of protections for what is likely to be your most valuable asset, your home.  If your home is damages or destroyed as a result of any of the perils listed within you insurance policy, the insurer is responsible for helping you deal with the financial costs.

Life Insurance 

Since life insurance is meant to help replace your income should you die prematurely, you're underinsured if the death benefit of your policy falls short of taking care of such things as:

• The income your now provide
• Debts/financial liabilities your have incurred, including your home mortgage
• End of life expenses
• Higher education expenses for your children

Auto Insurance

Almost every state requires a minimum amount of liability coverage for every vehicle driven on public roads but these minimums are woefully inadequate.  In North Carolina, for example, you're required to have liability insurance of $30K per person (bodily injury),  $60K per accident (bodily injury) and $25K for damage to a third-party's property.

An accident for which you're held liable could incur costs many times these minimum amounts and any amount above your policy limits would fall directly to you for payment.  One serious accident could ruin you financially for life.  Unless your auto liability coverage is many times higher than the minimum required, you are underinsured.  For best coverage, look into purchasing an umbrella policy.

Homeowner's Insurance

The worst case scenario for the company insuring your home is if it becomes totally destroyed by something like a house fire or a tornado.  If your insurance policy would pay 90% or less of the cost to completely rebuild your home, you are underinsured.  This includes using the same or similar materials and replacing everything in your home.  Homeowner's coverage should be rechecked every year or two.

What Drives Auto Insurance Rates Up?

 

Many of our clients are noticing that their Greensboro auto insurance rates continue to increase year over year and they're wondering why.  There are a number of answers to this question and they can be divided into two sections:

1.  Rate increases affecting everyone
2.  Rate increases specifically affecting you

Everyone's Coverage Rates Going Up

The auto insurance business is highly competitive and many auto insurance companies are struggling to stay profitable in these days of unusually high claims payments.  This has caused insurance rates to spiral upwards during the past several years.  This affects your Greensboro auto insurance rates as well as rates with companies all across the country.

Like any other business, an auto insurance company must stay profitable in order to remain in business.  They make money in two ways:  by collecting premium dollars from their policyholders and by putting these collected funds into profitable investments.  These funds are then used to pay out claims and to cover employee salaries and other administrative costs.  When claims payments going out surpass premiums coming in, a phenomena that's known as underwriting loss, premium costs must be increased in order to make ends meet.   There are some definite reasons why claims have risen so much recently.  Consider this:  

In the past several years, eight out of the ten largest auto insurance companies in the U.S. have reported losing money in their policy underwriting efforts.  In other words, they've paid out more in claims than they've collected in premiums.  Reasons for this include:

• A record number of disasters occurred in 2018-2019, including wildfires, hurricanes, floods and more.  These disasters not only negatively affected home insurance companies but also those companies insuring automobiles.  An inordinate number of claims were made on vehicles that burned, suffered flood damage or were damaged in tornadoes.
• An increase in distracted-driving accidents, mostly attributed to cell phone use, have been occurring lately.  Millions of crashes are blamed on distracted driving, causing insurers to raise rates.
• Expensive technology added to newer vehicles have made repairs more costly.  What used to be a simple rear bumper repair, for example, now includes repair of rearview video cameras, now required on all new cars sold in the U.S.

Rate increases affecting you individually may result from:

• Too many claims filed
• Adding a teen driver to your policy
• Moving to a higher crime/higher accident-prone area
• Too many moving violations
• You've turned 70 years old